Rollins, Inc. Reports Third Quarter And Nine Months 2014 Financial Results

Company posts 34th consecutive quarter of improved earnings

ATLANTA, Oct. 29, 2014 /PRNewswire/ -- Rollins, Inc. (NYSE: ROL), a premier global consumer and commercial services company, today reported strong unaudited financial results for its third quarter and nine months ended September 30, 2014.   

The Company recorded third quarter revenues of $384.9 million, an increase of 6.3% compared to $362.2 million in the prior year's third quarter.  Net Income increased 13.6% to $41.1 million or $0.28 per diluted share for the third quarter ended September 30, 2014, compared to $36.2 million or $0.25 per diluted share for the same period in 2013.   

Rollins' revenues rose 5.4% for the first nine months of 2014 to $1.068 billion compared to $1.013 billion for the prior year.  Net income for the first nine months of 2014 was $107.7 million, an increase of 13.0%, or $0.74 per diluted share compared to $95.4 million or $0.65 per diluted share for the same period last year.   

In the third quarter, the Company repurchased 779,267 shares under its share repurchase program and 1,005,279 shares have been repurchased year-to-date.  In total, 3,952,205 additional shares may be purchased under previously approved programs by the Board of Directors. 

Commenting on the Company's results, Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, "We are pleased to report another quarter of improved revenue and earnings.   Our Company's solid financial results for the quarter and first nine months of the year reflect the growth from all business lines and the positive results from the investments we are making."

Mr. Rollins continued, "We were pleased to add to our family of brands with the acquisition of PermaTreat on August 1 and look forward to working with their fine team.   Our company is on track for another successful year and we are working on 2015 initiatives to ensure continuous improvement in our customer service and increasing value for all our stakeholders."

Rollins, Inc. is a premier global consumer and commercial services company. Through its wholly owned subsidiaries, Orkin LLC., HomeTeam Pest Defense, Orkin Canada, Western Pest Services, The Industrial Fumigant Company, Trutech LLC., Rollins Australia, Waltham Services LLC., PermaTreat, and Crane Pest Control, the Company provides essential pest control services and protection against termite damage, rodents and insects to more than two million customers in the United States, Canada, Central America, South America, the Caribbean, the Middle East, Asia, the Mediterranean, Europe, Africa, Mexico, and Australia from more than 500 locations. You can learn more about our subsidiaries by visiting our web sites at www.orkin.com, www.pestdefense.com, www.orkincanada.ca, www.westernpest.comwww.indfumco.com, www.trutechinc.com, www.allpest.com.au, www.walthamservices.com, www.permatreat.com, www.cranepestcontrol.com, and www.rollins.com. You can also find this and other news releases at www.rollins.com by accessing the news releases button.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This release contains statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements about the Company's expectation of a successful year in 2014 and of continuous improvement in our customer service and increasing value for all our stakeholders in 2015.  The actual results of the Company could differ materially from those indicated by the forward-looking statements because of various risks and uncertainties, including without limitation, economic and competitive conditions which may adversely affect the Company's business; the degree of success of the Company's pest and termite process, and pest control selling and treatment methods; the Company's ability to identify and integrate potential acquisitions; climate and weather trends; competitive factors and pricing practices; the Company's ability to attract and retain skilled workers, and potential increases in labor costs; uncertainties of litigation; and changes in various government laws and regulations, including environmental regulations.  All of the foregoing risks and uncertainties are beyond the ability of the Company to control, and in many cases the Company cannot predict the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements.  A more detailed discussion of potential risks facing the Company can be found in the Company's Report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2013.

 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

At September 30, (unaudited)

2014


2013

ASSETS




Cash and cash equivalents

$               114,216


$                  116,734

Trade accounts receivables, net

87,755


80,902

Financed receivables, net

12,867


12,740

Materials and supplies

12,526


11,836

Deferred income taxes, net

42,280


34,665

Other current assets

17,701


19,804

Total Current Assets

287,345


276,681

Equipment and property, net

101,986


85,348

Goodwill

250,540


212,201

Customer contracts and other intangible assets, net

150,286


134,763

Deferred income taxes, net

-


25,903

Financed receivables, long-term, net

12,276


12,722

Prepaid Pension

10,533


-

Other assets

13,668


13,246

    Total Assets

$               826,634


$                  760,864





LIABILITIES




Accounts payable

$                  26,293


$                    26,106

Accrued insurance, current

25,024


26,551

Accrued compensation and related liabilities

72,074


63,695

Unearned revenue

104,296


100,114

Other current liabilities

40,170


32,093

Total Current Liabilities

267,857


248,559

Accrued insurance, less current portion

30,472


28,094

Accrued pension

493


41,509

Deferred income taxes, net

397


-

Long-term accrued liabilities

36,402


35,410

Total Liabilities

335,621


353,572





STOCKHOLDERS' EQUITY




Common stock

145,726


145,879

Retained earnings and other equity

345,287


261,413

Total stockholders' equity

491,013


407,292

Total Liabilities and Stockholders' Equity

$               826,634


$                  760,864





 

 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)










Third Quarter Ended


Nine Months Ended


September 30,


September 30,


2014


2013


2014


2013

REVENUES








Customer services

$  384,870


$  362,155


$ 1,067,615


$ 1,012,667

COSTS AND EXPENSES








Cost of services provided

188,810


181,135


532,760


511,102

Depreciation and amortization

11,437


10,076


32,259


29,738

Sales, general and administrative

118,679


113,028


329,785


321,680

Interest (income)/expense

24


(101)


(138)


(273)


318,950


304,138


894,666


862,247

INCOME BEFORE INCOME TAXES

65,920


58,017


172,949


150,420

PROVISION FOR INCOME TAXES

24,799


21,817


65,202


55,047

NET INCOME

$    41,121


$   36,200


$   107,747


$      95,373









NET INCOME PER SHARE - BASIC AND DILUTED

$        0.28


$        0.25


$         0.74


$          0.65









Weighted average shares outstanding - basic and diluted

145,800


146,007


145,888


146,151









 

CONFERENCE CALL ANNOUNCEMENT 
Rollins, Inc.
(NYSE: ROL)

Management will hold a conference call to discuss
Third Quarter and Nine Months 2014 results on:

Wednesday, October 29, 2014 at:
10:00 a.m. Eastern
9:00 a.m. Central
8:00 a.m. Mountain
7:00 a.m. Pacific

TO PARTICIPATE:
Please dial 888-503-8175 domestic;
719-325-2491 international
at least 5 minutes before start time.

REPLAY: available through November 5, 2014
Please dial 888-203-1112/719-457-0820, Passcode: 5152310
THIS CALL CAN ALSO BE ACCESSED THROUGH THE INTERNET AT
www.viavid.com

Questions?
Contact Samantha Alphonso at Financial Relations Board at 212-827-3746
Or email to salphonso@mww.com

For Further Information Contact
Harry J. Cynkus (404) 888-2922

SOURCE Rollins, Inc.